Boston, MA 08/21/2014 (wallstreetpr) – Vimicro International Corporation (ADR) (NASDAQ:VIMC) announced that it had won a competitive bid in the Taiyuan City of Shanxi Province. It is related with its SVAC-compliant video surveillance systems and cameras in Wanbolin District. The bid is won by Shanxi Zhongtianxin Science and Technology Co. Ltd. who is the joint venture of Vimicro International. The contract size is estimated to be around RMB31 million.
The joint venture
Vimicro International Corporation (ADR) (NASDAQ:VIMC) holds a 51% stake in Zhongtianxin and the remaining 49% stake is owned by Shanxi Guoxin Investment Co. The second company is a Shanxi provincial government-owned investment company. The bid won will allow Vimicro to go ahead with the “Public Security Video & Image Information Systems Project” based in Wanbolin District.
The management view
Dr. John Deng, Chairman and the CEO, said that Vimicro International Corporation (ADR) (NASDAQ:VIMC) is delighted to get a chance to go ahead with an impressive project in Wanbolin District. As per the bid, it has to supply the SVAC-compliant video surveillance systems and products. It has got immense experience and expertise in providing SVAC solutions and technology in the industry. It has got a chance to work with Shanxi Provincial Government in the Wanbolin District.
It will provide the complete SVAC solutions across the province. The new project will serve as a base for building of SVAC solutions in the other regions in Taiyuan City. It has got a unique opportunity to capitalize on the adoption of innovative IT technology. It is an important platform which will allow Vimicro to enhance the value for shareholders for long term. Vimicro wants to expand its services in China’s market. It wants to leverage on proprietary chip technology to get a strong boost in China’s market. Vimicro International Corporation (ADR) (NASDAQ:VIMC) has also raised its revenue guidance to $23 million to $24 million as compared to $19 million to $21 million for the second quarter. Vimicro can announce the results around 28 August, 2014.